Thursday, February 16, 2012

The Vampire Squid and the Bank of Canada?

In the Rolling Stone magazine of April 5, 2010, Matt Taibbi wrote an article (cited across the break) about Goldman Sach's global financial reach via its former employees.  In that article, Taibbi described Goldman Sachs as "a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money." This post provides another example of the "vampire squid's" financial reach.

On The New York Times' Economix blog, Professor Simon Johnson of MIT wrote about the Bank of Canada's (Canada's central bank) comment letter criticizing the Volcker Rule.  As a reminder, the Volcker Rule is part of the Dodd-Frank Act and it addresses proprietary trading of banks operating in the United States.

The comment letter for the Bank of Canada was written by the Governor of the Bank of Canada, Mark Carney.  Per the Bank of Canada's web site, Mr. Carney is a former employee of Goldman Sachs.

Now the fact that Mr. Carney's is a former employee of Goldman Sachs may have nothing to do with the opposition criticism of the Volcker Rule by the Bank of Canada.

Professor Johnson complete blog posting can be read by following the link in the citation for it.

Johnson, Simon. "Economix: Paul Volcker vs. the Bank of Canada." The New York Times 16 February, 2012: online edition.

Related information:

Taibbi, Matt. "The Great American Bubble Machine." Rolling Stone 5 April, 2010: online edition.

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